Houston-based Post Oak Energy Capital LP, a private equity provider, said Dec. 3 that through investment partnerships that it manages, it has committed $40 million in equity capital to Core Minerals Management II LP of Evansville, Ill.
Funding from the commitment will be used for Core’s corporate growth and acquisitions. Post Oak funded $10 million at the November 2012 closing, with the remaining $30 million available to support future activities. Clint Wetmore, Post Oak managing director, and Ryan Mathews, Post Oak partner, led the investment.
Core’s leadership team includes Jim Rode, president and CEO; Mike McLear, executive vice president; and John Gasser, CFO. The company operates in and around the Illinois Basin and currently produces around 650 barrels of oil per day. The company’s existing activities include long-life oil production from conventional reservoirs and aggregating and revitalizing existing producing fields from legacy producers.
“We are pleased to be investing with a talented management team with a regionally focused operating base in one of North America’s most prolific legacy oil basins,” said Post Oak managing director Frost Cochran.
“From our operating base in Indiana, we are able to generate low-risk, low-cost production growth,” said Rode. “Partnering with Post Oak provides us with the capacity to fund these unique opportunities on a timely basis.”
Established in 2006, Post Oak’s management team pursues private equity investments mainly in the upstream sector of the oil and gas industry in North America and, to a lesser extent, in oil field services and related infrastructure.
Core Minerals is a privately-held oil and gas company that deploys new technologies and enhanced drilling techniques in the development of assets in the Illinois Basin and beyond.